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MERRILL LYNCH REPORTS RECORD QUARTERLY RESULTS; NET EARNINGS INCREASE 57 PERCENT TO $342 MILLION

 NEW YORK, April 13 /PRNewswire/ -- Merrill Lynch & Co., Inc. (NYSE: MER) today reported first quarter net earnings of a record $342 million, up 57 percent from a year ago.
 Earnings per common share were $3.02 primary and fully diluted, compared with earnings per common share of $1.86 primary and fully diluted in the corresponding 1992 period. Excluding the previously announced cumulative effect of the early adoption of two accounting changes, SFAS No. 106 and SFAS No. 109, 1992 first quarter earnings per share were $2.37.
 The first quarter 1993 results include a one-time lease charge of $103 million (pretax) for office space at the corporation's World Financial Center headquarters. This charge results from a decision to offer for sublease to others office space made available by continued consolidation of operations and declining headcount at the corporate headquarters facility. This charge reduced first quarter 1993 earnings per common share by $0.53, and is reflected in the $3.02 earnings per share amount.
 "Our first quarter earnings set a new record for Merrill Lynch, and demonstrate the continuing strength of our dual franchise serving individual investors as well as corporate and institutional clients worldwide," said Chairman of the Board William A. Schreyer and President and Chief Executive Officer Daniel P. Tully.
 "Revenues set new records in four separate categories -- commissions, principal transactions, investment banking, and asset management and custodial fees -- and expenses remained well controlled," they said.
 Revenues
 Total revenues of $3.96 billion were the highest ever achieved in a quarter, and were 16 percent above the 1992 first quarter. Net revenues (revenues after interest expense) were up 18 percent to $2.62 billion.
 Commission revenues increased to a record $714 million, up 4 percent from the year ago quarter and surpassing the previous record set in the first quarter of 1987. Continued high levels of investor activity led to advances in listed securities and mutual fund commissions.
 Principal transactions revenues increased 32 percent to a record $755 million. Heightened client activity contributed to higher revenues from swaps and derivatives, and corporate and municipal bonds.
 Investment banking revenues were also a record at $455 million, up 23 percent from the year-ago quarter. Merrill Lynch was again the top underwriter of debt and equity securities both in the U.S., with a 19.4 percent market share, and globally, with a 14.2 percent market share, according to Securities Data Co.
 Asset management and custodial fees rose 7 percent to a record $236 million. Client assets under fee-based management by Merrill Lynch Asset Management grew 12 percent from the year-earlier period to $145 billion at quarter end. Included in this total, MLAM stock and bond funds grew 34 percent from the year-ago quarter to $55 billion. Other revenues advanced 15 percent to $210 million.
 Net interest and dividend profit rose 29 percent to $256 million. Higher levels of interest earning assets and favorable interest rate spreads contributed to these results, while credit upgrades by rating agencies helped lower funding costs.
 Expenses
 Including the one-time lease charge, total non-interest expenses were up 16 percent over the first quarter of 1992. Excluding the lease charge, non-interest expenses increased 10 percent, compared with the 18 percent advance in net revenues.
 The largest expense category, compensation and benefits, increased 14 percent to $1.26 billion as a direct result of higher levels of business activity and profitability. Compensation and benefits expense as a percentage of net revenues decreased to 48.3 percent compared with 50.0 percent in the 1992 first quarter.
 Excluding the one-time, $103 million lease charge which is included in occupancy expense, facilities-related costs remained virtually flat.
 Brokerage, clearing and exchange fees increased 10 percent to $74 million as a result of increased business volume.
 Among other expense categories, advertising and market development expenses rose 10 percent to $81 million due to higher sales promotion and advertising expenditures consistent with business activity. Professional fees increased 4 percent to $60 million, while other expenses increased 2 percent to $162 million.
 The 1993 and 1992 first quarter tax provision represent a 42 percent effective tax rate for each period.
 MERRILL LYNCH & CO., INC.
 Preliminary Unaudited Earnings Summary
 (In thousands, except per share amounts)
 Pct. of
 Dollar
 For the Three Months Ended Change
 Pct. of Pct. of Increase
 3/26/93 Revs.(A) 3/27/92 Revs.(A) (Decrease)
 Revenues:
 Commissions $ 714,406 18 $ 685,190 20 4
 Int. & divs. 1,602,455 41 1,390,645 41 15
 Principal
 transactions 754,816 19 573,992 17 32
 Investment
 banking 445,356 11 361,139 11 23
 Asset mgmt. &
 custodial fees 236,207 6 220,149 6 7
 Other 209,865 5 183,163 5 15
 Total revs. 3,963,105 100 3,414,278 100 16
 Interest exp. 1,346,868 34 1,191,893 35 13
 Net revenues 2,616,237 66 2,222,385 65 18
 Non-int. exps.:
 Compensation
 & benefits 1,264,292 48 1,112,275 50 14
 Occupancy 223,311 9 121,886 6 83
 Communications
 & equipment
 rental 91,390 3 87,806 4 4
 Depreciation
 & amort. 69,898 3 67,742 3 3
 Brokerage,
 clearing &
 exchange fees 74,220 3 67,381 3 10
 Advertising &
 mkt. developmt. 81,053 3 73,452 3 10
 Professional
 fees 60,202 2 57,730 3 4
 Other 161,550 6 158,172 7 2
 Total non-int.
 expenses 2,025,916 77 1,746,444 79 16
 Earns. before
 inc. taxes &
 cum. effect
 of changes in
 accounting
 principles 590,321 23 475,941 21 24
 Income tax exp. 247,935 10 199,896 9 24
 Earns. before
 cum. effect
 of changes in
 accounting
 principles 342,386 13 276,045 12 24
 Cum. effect of
 changes in
 accounting
 principles
 (net of applic.
 income taxes) -- -- (58,580) (2) N/M
 Net earnings $ 342,386 13 $ 217,465 10 57
 Preferred
 stock divs. $ 1,396 $ 1,874
 Net earnings
 applicable
 to common
 stockholders $ 340,990 $ 215,591
 Earnings per
 common share:
 Primary
 Earns. before
 cum. effect
 of changes in
 accounting
 principles $3.02 $ 2.37
 Cum. effect
 of changes in
 accounting
 principles -- (0.51)
 Net earnings $3.02 $ 1.86
 Fully diluted
 Earns. before
 cum. effect
 of changes in
 accounting
 principles $3.02 $ 2.37
 Cum. effect
 of changes in
 accounting
 principles -- (0.51)
 Net earnings $3.02 $ 1.86
 Average shares:
 Primary 112,957 115,543
 Fully diluted 112,957 115,543
 (A) -- Revenues and interest expense are presented as a percentage of total revenues. Non-interest expenses, cumulative effect of changes in accounting principles, and earnings are presented as a percentage of net revenues.
 -0- 4/13/93
 /CONTACT: James R. Wiggins, 212-449-7280, or William Clark, 212-449-7284, both of Merrill Lynch/
 (MER)


CO: Merrill Lynch & Co., Inc. ST: New York IN: FIN SU: ERN

TS-LG -- NY016 -- 5148 04/13/93 10:38 EDT
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